You could be forgiven for thinking that Bermuda was no longer a player in the insurance-linked securities and catastrophe bond market. 2009 has seen the bulk of deals issued out of the Cayman Islands and even the Bermuda domiciled reinsurers haven’t been as active in the market as they used to be. But the island hopes to attract more of the ILS issuance in 2010 and puts much of their hopes on the newly passed Insurance Amendment Act (passed in October 2009).
The act hopes to make it easier to set up special purpose insurers on the island who can then be the issuing vehicles for catastrophe bond deals. It will be good for there to be more choice for reinsurers looking to domicile an SPI or SPV somewhere suitable so it certainly won’t hurt to have more options at their disposal.
Whether Bermuda can claw back market share from the Caymans remains to be seen. Let us know what you think in the comments below.
More on this topic from the Bermuda Sun here and in previous posts on Artemis here and here.
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